Jazz Technologies surges on upgraded revenue guidance
Jazz Technologies Inc. (Amex: JAZ) surged in after-hours trading Monday after the holding company of Jazz Semiconductor, Inc. announced it expects higher second quarter revenues than previously anticipated.
For the three months ended June 29 the semi-conductor company said it now expects revenues to be in the range of $52 million to $52.5 million, compared with previous guidance of $48 million to $50 million.
The consensus of two analysts surveyed by Thomson Financial was for revenue of $48.9 million for the second quarter.
The Newport Beach, Calif.-based company said results were positively impacted by increased demand.
"We are seeing signs that the specialty semiconductor sector and Jazz, specifically, are emerging from the inventory correction,” said Gil Ameilo, chairman and CEO of Jazz Technologies. “We expect for this momentum to continue in the second half of the year and beyond, translating into gradual sequential growth."
Jazz Technologies also said it made progress with its cost reduction program.
“… our cost reduction program in combination with the improved top line performance, is expected to boost the company's profitability over time,” said Paul Pittman, CFO of Jazz Technologies.
Jazz Technologies expects to report final results for the second quarter ended on August 6. Shares of Jazz Technologies soared 10.49%, or $0.32, to $3.37 in after-hours trading Monday.
